Citigroup: $50 Million Private Jet Takes Edge off Recession

Nothing too luxurious for struggling bank.

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If your stock trades at $3.67 a share, buying a new $50 million private jet probably shouldn't be at the top of your list of things to do.

But that assumes 1. You're sane. 2. You have half an ounce of public-relations smarts. 3. You give a damn.

The jury is still out on Citigroup (C), which recently accepted $45 billion in taxpayer funds to keep the company alive.

Nevertheless, Citigroup plans to spend about $50 million on a new corporate jet, a French-made Dassault Falcon 7X, the New York Post reports.

Citigroup is trying to sell 2 older planes, both Dassault 900 EXs. The jets are about 10 years old and are valued at an estimated $27 million.

While unrelated, Citigroup's planned expenditure is sure to be filed under "What were these chumps thinking?" by many taxpayers. News of Citigroup's new plane follows the tale of former Merrill Lynch CEO John Thain, who spent $1.2 million to renovate his office last year. He now says the expenditure was a "mistake" and plans to pay back the money. Thain sold Merrill Lynch to Bank of America (BAC) on January 1st and was kicked out last week as head of trading, investment banking and brokerage for the combined company.

So far, the brain-dead auto industry leads the PR Disaster Derby with its bone-headed decision to fly to Washington in private jets to beg Uncle Sam for a $25 billion bailout - then spending taxpayer money to thank them for the handout.

But it's only January.

TheWall Street Journal reports that 2 California towns, Victorville and Norco, plan to bail out local car dealers in an effort to retain jobs and keep sales and property-tax revenue flowing. Redlands is reviving a similar plan for its new and used-car dealers. Here's hoping the top dogs don't head for Las Vegas.

Citigroup's decision to open its wallet on an expensive jet may not be the catastrophe it appears because Citigroup ordered the plane 2 years ago when the company had plenty of cash. There may be a stiff cancellation fee, so public-relations problems aside, it might make sense to buy the plane.

The Falcon 7X can cruise 5,950 miles without refueling and has a top speed of 559 mph. It might be a good idea for the company to have a private jet, given its worldwide operations. But if you're flying on someone else's dime, there's always coach on a commercial flight.

Given the fact that most Americans don't appear to support the bailout, buying a new plane -- from the French, no less -- looks like another case of PR foot-in-mouth disease for a struggling American company.

As manager Casey Stengel said about the hapless 1962 New York Mets, "Can't anybody here play this game?"

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